The development of the communication networks such as the Internet has exponentially increased the availability of information to consumers. Traditional auditing practices are limited to the verification and accuracy of financial reporting in business entities such as companies whose stock is publicly traded. However, the wide availability of financial information via the Internet has resulted in the need for provision of new types of accounting and auditing services such as real-time basis auditing for showing consumers how a company is performing, consulting services, and the like. These new types of services can be provided if business and financial information provided via the Internet can be effectively utilized.
Many business entities store business and financial information in their own internal systems and/or in publicly accessible databases such as the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). The U.S. Security and exchange commission (SEC) requires publicly traded business entities to file registration statements, periodic reports, and other forms electronically through EDGAR so that they are available to the general public. However, this information is often stored in widely varying formats and granularity, even between entities that use identical financial reporting software products. Such inconsistency in formats and granularity makes it difficult for business entities to share information reliably or cost effectively when performing many aspects of their business, including applying for credit, reconciling accounts, or reporting to investors, and the like.
Presently, there exists no information system that can universally analyze, retrieve and report business information available through Internet sources due to the non-standard format and inconstant accounting terms and formats of the available information. However, there have been efforts to standardize reporting. For example, standardized languages, particularly the eXtensible Business Reporting Language (XBRL) have been developed for delivering or reporting information in a consistent form. XBRL creates a vocabulary for describing exactly which bits of information are being included in a report, even to the point of taking regulatory jurisdiction and other variances into consideration. It is expected that use of XBRL may affect the format of the business information throughout the entire life cycle of that information, from the initial creation of invoices, orders, and other documents and actions, through the collection, aggregation, and reconciliation processing done in the financial departments, and eventually, to the reporting formats such as regulatory filings, statements, and corporate reports.
Consequently, it would be desirable to provide a system and method for searching, analyzing, and reporting business and financial information available through communication networks, particularly the Internet, regardless of inconsistencies in formats and granularity of that information. It would be also desirable to provide a system and method for generating financial information in a standard format so that users can share business and financial information reliably and cost effectively.